Merz Says Parts of German Economy in ‘Very Critical’ State

German Chancellor Friedrich Merz described “certain sectors” of his country’s economy as being in “very critical” condition and pledged that reviving growth will be his government’s top priority this year.

While Merz didn’t specify which sectors he had in mind in a letter to lawmakers in his ruling coalition, Germany’s key car sector has struggled with slumping sales in China, and its troubles have spilled into the rest of the economy.